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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dave54 who wrote (95740)	1/15/2008 1:34:08 PM
From: cyesp	Respond to of 206175

SNG - Dave, thanks for both your initial comments and the response to the serious concerns surrounding Mr. Noval. O&G exploration and development companies reinvest so much of their cashflow that it is easy for bad management decisions to destroy company value and questionable management integrity compounds the potential loss. I totally agree with the comments to stay away from management who have significant taint of these issues. However, it sounds like this maybe one of those rare occasions, when the value of the asset might justify taking on the added exposure of the management question. It appears that SNG has a tremendous discovery with good market/infrastructure. UPL's Pinedale "discovery" was better than the hype. CHK almost went bankrupt from over-spending before becoming today's darling. I have alot of questions about DPTR management, but they have quickly established exposure to some world class plays. At first I thought SNG might be another BZP. BZP has overdelivered on their statements, they are a class shop. SNG has some skeletons in their closet, so does not merit as much exposure in my portfolio. But I will hold and add SNG if given the price opportunity. And will not hesitate to dump the position if future questions arise. Thanks again for your idea and comments. Cy

To: Dave54 who wrote (95740)	1/15/2008 1:37:09 PM
From: que seria	Respond to of 206175

Thanks for your comments on SNG, Dave. I noted the change at the top too, as a positive, since I don't trust Noval. I also discount the 100MMcfd "estimated flowing rate of over 100 mmscf/d of natural gas" per yesterday's news release, partly due to the source and partly due to them guessing. I take that to mean absolute open flow. Sounds more promotional than relevant to me, granting I'm less knowledgeable than most here. I almost didn't buy yesterday bcs that sort of reporting reminded me of prior SNG promotion. I'd rather read testing details and knowledgeable posters' reaction to them than see how big an AOF number they dare put in a NR. I might believe or care about the number if it came from a low promo, high reliability producer. SNG long ago lost a chance for a "trust us" projection based upon undisclosed details. Yesterday's and today's selling into news is proving that. I'm in anyway because, assuming minimal competence and integrity, this price for even the one sand they're testing strikes me as unsustainably low, given results at Dolphin and reason to find the wells comparable. Even a hyping promoter can hit a home run. I expect a rise when old tired $ has been rinsed out by the new, and/if production testing confirms even the lower sand to the market's satisfaction. It's all about risk/reward.